A consortium led by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) has reached a definitive agreement to purchase US energy firm Allete in a deal valued at $6.2 billion, including debt assumption.
Under the terms of the agreement, the acquisition will be at a price of $67.00 per share in cash.
Allete, along with its portfolio of regulated utilities and renewable energy entities, is deeply committed to driving the clean-energy transition. The company focuses on expanding renewables, reducing carbon emissions, bolstering grid resilience, and fostering innovation.
Bethany Owen, Chair, President, and Chief Executive of Allete, emphasized the significance of the transaction in advancing the company's sustainability objectives. She stated, “Our ‘Sustainability-in-Action' strategy has secured Allete's place as a clean-energy leader. Through this transaction with CPP Investments and GIP, we will have access to the capital we need while keeping our customers, communities, and co-workers at the forefront of all that we do…”
James Bryce, Managing Director and Global Head of Infrastructure at CPP Investments, expressed confidence in Allete's management and its vision for a sustainable energy future. He remarked, “Allete's management team has done an excellent job leading the company toward a truly sustainable clean-energy future. Together with GIP, we look forward to bringing our sector expertise and long-term capital to support Allete's strong management team as they continue to deliver safe, reliable, affordable energy services to their customers.”
Bayo Ogunlesi, Chairman and Chief Executive of GIP, echoed similar sentiments, highlighting the importance of Allete's commitment to clean energy. “We are excited to work with Bethany Owen and the full Allete team as they continue to supply affordable and reliable energy services. GIP, alongside CPP Investments, look forward to partnering to provide Allete with additional capital so they can continue to decarbonize their business to benefit the customers and communities they serve.”
